Apple Update

Steve Jobs likes to use MacWorld as the place to thrill the faithful with exciting Apple hardware and software announcements.  As his charismatic presence rises and the enchanted audience swells to meet it, the ante rises.  They are rarely disappointed.  He knows them well and often pleases.  We have watched again and again as they have thrilled to quirky new hardware designs (Primary Colors! the Cube! The desktop as decorative device!) and software designed for users, not technicians.

This year was no exception.

Software

Apple rolled out a brand new browser (see above), Safari, which is designed to give the Apple faithful their very own window into the web.

Apple also previewed a new presentation tool, Keynote, designed for ease of use, with an emphasis on professionally designed themes, typography, and professionally quality images.  The product imports and exports Microsoft PowerPoint, QuickTime and PDF files.  It is available immediately for $99.  The dazzling eye candy, complete with fancy slideware (animations, video, screen effects) requires a G3 with 256Mb of RAM and the OS X 10.2.3 version of the operating system.

Apple also showed new versions of iPhoto and iMovie (free updates) and a new edition of Final Cut.

Hardware

Apple announced new portables at both ends of the range - a 12" G4 PowerBook ($1799) and a 17" PowerBook ($3299) both with many features. The 17" is the first notebook computer to offer such a large display. Both systems have built-in Bluetooth, 802.11g, and FireWire 800 connectivity - thoroughly modern machines.

What Does That Do For Apple

It's clear what new Apple software and hardware do for Apple aficionados - and even for some new users who are lured to the easy to use, aesthetically pleasing designs.  The question remains, what they do for Apple.  That seems a tougher question to answer.

Just after MacWorld, on January 15, Apple announced its first quarter (actually the 4th quarter of 2002) results.  It was a tough year and although revenue was up both net profits and gross margins were down.

The Street seems to believe that none of the recent Apple announcements are likely to change Apple's market share - crucial for making Apple into a mainstream player.  The Street's read seems to be that the investment in the "lifestyle" retail stores won't pay off and that Apple will remain a niche player.

I'm not so sure.

I've watched an increasing number of people who want or need to use a computer but who have no interest in learning anything about computing decide that an Apple Macintosh is a sensible decision.  Small price differences are fine with them - particularly if they talk to someone knowledgeable and find out that a likely trade-off might be that they could be self-sufficient quickly on an Apple but required continued and costly assistance on the more complex Wintel platform.

Maybe Apple will figure out how to leverage its lifestyle play yet and sell more than computers.  Its iPod MP3 players are popular in spite of their relatively high prices and there is lots of room to add additional consumer electronic products to the Apple lifestyle mix.

I wouldn't give up on Apple's chance yet - not with their worldwide brand recognition and their incomparable ability to figure out what their customers want.  If they could just once break out of their niche and apply this to a wider market, everything would change.

We were once an "Apple shop," running our business entirely on Apple computers, printers, and networks, and sometimes when nothing works - and I certainly can't figure out how to fix it on my own - I remember longingly the days when I could and did and wonder if it would still be possible. 

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